Finance Minister Nirmala Sitharaman Affirms Fiscal Discipline Amid New Grant Proposals

In a recent address, Finance Minister Nirmala Sitharaman reaffirmed the government's commitment to maintaining fiscal discipline while introducing supplementary demands for grants. She assured that the additional spending proposals would align with the fiscal deficit target set for FY26. With a focus on economic stability, Sitharaman highlighted the allocation for the Economic Stabilisation Fund and addressed concerns regarding fertilizer availability for farmers. This article delves into the details of the supplementary demands and the government's fiscal strategy moving forward.

By Narendra Chaudhary Mar 13, 2026, 15:53 IST

Government's Commitment to Fiscal Deficit Targets

New Delhi: Finance Minister Nirmala Sitharaman emphasized the government's dedication to maintaining the fiscal deficit within the revised estimates for the fiscal year 2025-26, as she introduced the second batch of supplementary demands for grants on Friday.

During her response to the Lok Sabha's discussion on these supplementary demands, she assured that the proposed additional expenditures would align with the fiscal deficit target outlined in the Union Budget for 2026-27.

Sitharaman stated, "I want to reaffirm that despite the additional provisions we are presenting through technical and cash supplementary demands, no Member of Parliament should doubt our ability to meet the fiscal deficit target established during the Budget presentation in this House."

The Budget for 2026-27 specifies a fiscal deficit target of 4.3 percent of GDP, which is an improvement from the revised estimate of 4.4 percent for 2025-26, reflecting the government's ongoing efforts towards fiscal consolidation.

She reiterated, "The commitments made in this House, including those concerning the second Supplementary Demands for Grants, will remain within the fiscal deficit target presented in Parliament on February 1, 2026."

The Supplementary Demands propose a total gross expenditure of Rs 2.81 lakh crore, encompassing 61 grant requests. Sitharaman assured that these supplementary demands are consistent with the fiscal deficit figures mentioned in the Budget.

Additionally, she addressed concerns regarding fertilizer availability for farmers, confirming that sufficient provisions have been made. "The Economic Stabilisation Fund will provide the necessary fiscal flexibility for India to navigate global challenges," she added, noting that Rs 57,381.84 crore has been allocated for this Fund.